Pandora Media, an internet radio in the United States, just announced the pricing of its initial public offering of approximately 14.7 million shares of common stock at a price to the public of $16.00 per share. A total of approximately 6.0 million shares are being offered by Pandora, and a total of approximately 8.7 million shares are being offered by selling stockholders. In addition, Pandora has granted the underwriters a 30-day option to purchase up to approximately an additional 2.2 million shares to cover over-allotments, if any. Pandora will not receive any proceeds from the sale of shares by the selling stockholders. Personally, I love to use the Pandora app when I travel and it actually does a very good job of suggesting songs you will like and gets better the more feedback you give it.

For anyone living under a rock, Pandora let’s you listen to music you love anytime, anywhere, through connected devices. Personalized stations launch instantly with the input of a single “seed” – a favorite artist, song or genre. This deal values Pandora at around $2.6 billon and for a company that isn’t profitable and lost $1.8 million last year it is just too high a price. I don’t want to be the one to run around screaming fire, but it seems like we are in the run-up to another tech bubble with all these tech IPO’s on the horizon. The scary part about a lot of them is they have no actual business model and aren’t profitable at this point even if they have millions of users. While I agree these businesses represent a huge potential for growth and profitability, the truth is that few of them have yet to deliver on that potential. In any case, we will keep tracking this and as always keep you informed.

I am the Co-Ceo of DLT Digital Media. We are a company that is focused on developing new and innovative web properties in addition to developing WordPress based web sites for others. But before I was all that, I was a gamer.